China Proposes Easing Short-term Trading Rules For Foreign Funds

The China Securities Regulatory Commission is working on a system to allow foreign investors to trade their positions within six months to facilitate investment in A shares, 21st Century Business Herald reported citing sources from regulatory departments. Currently, if a Chinese fund company which holds more than 5% of a company's stock through multiple fund offerings trades those shares within 6 months, it is not regarded as a short-term transaction, the newspaper said. Eligible foreign public funds are expected to enjoy the same arrangement when the new rules are announced, the newspaper said, adding that the proposed changes are in process.